Coolgardie Minerals will hit the ground running at its Bullabulling gold project near Coolgardie in the W.A. Goldfields, after closing out its $4m IPO last week oversubscribed.
With confidence returning to the broader market, Coolgardie Minerals is just one of a number of new floats that are attracting significant investor interest at present.
Coolgardie Minerals is a little bit rare as a new IPO having already ploughed $9m of private money into the project pre-IPO.
The company’s flagship Geko gold project contains a JORC-compliant resource of 2.6 million tonnes grading about 1.7g/t gold for 136,000 ounces.
Most of the mineral resource is at measured and indicated status and the company has been able to optimise a 92,000 ounce ore reserve at Geko.
The gold mineralisation at Geko starts from just 15m deep in a high-grade oxide zone and is defined to about 140m depth, limited only by a lack of drilling at this stage.
Geko lies on granted mining leases and is already effectively shovel ready at a small scale.
The historical Bullabulling series of open cut pits owned by Norton Goldfields located just south of Geko on the same mineralised zone, contain over 3 million ounces of remnant JORC-compliant gold resources, which augers well for Coolgardie Minerals.
The company holds about 549 square kilometres of prospective looking exploration, prospecting and mining licences in the surrounding Coolgardie district, which may also contain lithium mineralisation given the geological setting close to the abandoned Londonderry pegmatite mine.
Coolgardie Minerals is proposing to throw $2.65m into exploration expenditure at the Bullabulling project over the next two years with a view to steadily increasing the ore reserves.
The majority of this budget will go into exploratory RC and diamond drilling across the company’s leases but will also include a component of infill and deeper extensional resource development drilling at Geko to expand the resources and ore reserves there.
There are no shortages of drill targets in and around Coolgardie Mineral’s leases, however the current standouts are at the First Find and Endeavour prospects.
Both areas have delivered some very encouraging historical exploration drilling results.
First Find has produced a 15 metre intersection grading 13.5g/t gold, 5m @ 26.1g/t gold and a 3m intercept at just over an ounce to the tonne gold.
The Endeavour prospect is interpreted to have considerable blue sky potential for the company and is located on the southern continuation of Norton’s Bullabulling project.
Endeavour has produced some impressive narrow, high-grade drilling results in the past, including 2m @ 21.2g/t from 43m down-hole and 5m @ 5.14g/t gold from 40m down-hole.
The Goldfields region is rich with potential toll treatment options and if one can be found, Coolgardie Minerals could potentially obtain unicorn status as a small cap new ASX listing that can largely self fund its own ongoing exploration activities into the future.
Now that’s a little bit different.
By Matt Birney
